SNB Chairman Martin Schlegel said the policy rate remains the central bank’s primary instrument, with foreign-exchange interventions available when required. Speaking in Zurich, he set out how Switzerland’s monetary-policy transmission is designed to function across a wide range of conditions, while stressing the authorities do not rely on forward guidance as part of their framework.
Price Stability and Monetary Policy Tools
Schlegel said the SNB has met its price-stability objective so far this century, and argued it retains the tools needed to respond to future inflation risks. He described the Swiss franc as having relatively strong safe-haven characteristics versus other currencies, while pointing to Switzerland’s high exposure to external economic shocks.
Current Inflation Backdrop
On the current inflation backdrop, he said there is no evidence of price pressures spreading broadly through the economy, with inflation mainly confined to fuel and energy.
